Adnoc - Masdar JV to set up carbon capture project

Abu Dhabi, November 10, 2013

Abu Dhabi National Oil Company (Adnoc) and Masdar today signed a joint venture agreement to set up the Middle East’s first company focused on exploring and developing commercial-scale projects for carbon capture, usage and storage (CCUS).

Adnoc and Masdar have jointly awarded a Dh450 million ($122.5 million) engineering, procurement and construction (EPC) contract to Dodsal Group to build a carbon dioxide (CO2) compression facility and a 50-km pipeline.

The joint venture is 51 per cent owned by Adnoc and 49 per cent by Masdar.

The joint venture agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) in the presence of Sheikh Hazza bin Zayed Al Nahyan, national security advisor, and vice chairman of Abu Dhabi Executive Council.
Located in Abu Dhabi, the joint venture’s first CCUS project consists of three core components:
• First, CO2 will be captured onsite at Emirates Steel, the UAE’s largest steelmaker’s facility.
• Second, the CO2 will be compressed and transported along the 50 km pipeline to oilfields operated by Adnoc.
• Third, Adnoc will inject the CO2 intooil fields to enhance oil recovery, while storing the injected CO2 underground.
The project will sequester up to 800,000 tonnes of CO2 annually. Completion is set for 2016.

“The implementation of this technology is a demonstration of Masdar and Adnoc’s commitment to decarbonising the UAE’s growing economy,” said Dr. Sultan Ahmed Al Jaber, CEO of Masdar, Abu Dhabi’s renewable energy company.

“We are proud to be pioneering the use of CCUS technology in the region, a critical strategy to reduce global carbon emissions,” added Dr Al Jaber. “We hope this project will serve as a proof of concept and encourage other hydrocarbon-rich nations to adopt similar technologies to reduce their carbon emissions.”

The UAE has traditionally used hydrocarbon gases in some of the Abu Dhabi fields to enhance oil production. However, with the nation’s rise in its energy demand, this CCUS project will allow the UAE to preserve its natural gas for domestic electricity generation.

“The UAE is a responsible hydrocarbon producer,” said Abdulla Nasser Al Suwaidi, director general of Adnoc. “We believe CCUS has tremendous potential to both reduce our carbon footprint and enhance our oil and gas production. We are committed to finding and adopting real-world solutions that have economic and environmental returns.”

In 2009, Adnoc became the first national oil company in the region to pilot CO2 injection in collaboration with Masdar.

The joint venture is the first phase of an industrial-scale CCUS network planned as part of Abu Dhabi’s commitment to decarbonise its economy and create a low-carbon power generation industry. It will also collaborate with Adnoc’s Petroleum Institute and Masdar’s Institute of Science and Technology in developing leading edge technologies to optimise CO2 management in Abu Dhabi.

Carbon capture solutions are often cited as a critical strategy for climate change mitigation. According to the International Energy Agency (IEA), up to 20 percent of global CO2 emissions will need to be mitigated by carbon, capture and storage projects in the power and industrial sectors by 2050. To meet this goal, the IEA estimates that 100 carbon capture projects would have to be developed by 2020 and over 3,000 by 2050, requiring an investment of an estimated $3 trillion by 2050. – TradeArabia News Service